Insurance rates for most homeowners increase by 5.9%

A 5.9% increase in homeowners' insurance commenced Wednesday for most homeowners in the Triad and Northwest North Carolina.

Mike Causey, the state's insurance commissioner, reached a settlement in November with the N.C. Rate Bureau to allow the increase. It affects new and renewed policies.

The bureau is an independent group representing insurers writing policies in North Carolina. It typically asks for rate increases - some substantially higher in areas prone to damage from natural disasters, such as hurricanes, floods and winter storms.

The insurance commissioner, however, seldom agrees to a rate anywhere close to the bureau's full request.

For homeowners in Forsyth and Guilford counties, as well as in Greensboro and Winston-Salem, the 25% rate hike requested by the bureau would have raised their annual costs by $170 - or from an average of $637 to an average of $807.

Instead, the 5.9% increase represents a $38 increase to an average of $675.

As part of the agreement, the bureau will not seek another homeowner's rate increase until 2024 at the earliest.

336-727-7376 @rcraverWSJ